Question
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs:
| Actual total factory overhead cost incurred | $ | 24,000 | |
| Actual fixed overhead cost incurred | $ | 10,000 | |
| Budgeted fixed overhead cost | $ | 11,000 | |
| Actual machine hours | 5,000 | ||
| Standard machine hours allowed for the units manufactured | 4,800 | ||
| Denominator volumemachine hours | 5,500 | ||
| Standard variable overhead rate per machine hour | $ | 3.00 | |
Under a two-variance breakdown (decomposition) of the total factory overhead variance, the total flexible-budget variance, to the nearest whole dollar, is:
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Auditing A Practical Approach with Data Analytics
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
1st edition
1119401747, 978-1119401742
